Goldman drops bitcoin trading plans for now

Image courtesy of Ethereum World News archives

However, the current macro environment is definitely not ideal for long positions as Bitcoin trends lower towards $5,000 and Ethereum suffers from falling investor ICO interest.

The original report from Business Insider claimed Goldman was deprioritizing its cryptocurrency trading desk plans because of regulatory uncertainty.

Goldman Sach has explained that they are now focused more on other digital-coin services, such as a custody product.

"The people doing the applications don't fit the mould of who they are used to approving", explained Bill, a former Goldman Sachs employee.

It follows media reports, originally in Business Insider, that Goldman Sachs is shelving plans to set up a cryptocurrency trading desk. Instead, the bank will reportedly focus on a custody product for digital currencies created to serve large, institutional clients. "At this point, we have not reached a conclusion on the scope of our digital asset offering", Goldman Sachs said in a statement.

In recent weeks, executives have come to the conclusion that many steps still need to be taken, a lot of them outside the bank's control, before a regulated bank would be allowed to trade cryptocurrencies, the financial news website reported, citing one of the people. Do your market research before investing in cryptocurrencies.

Goldman had recruited Justin Schmidt from hedge fund Seven Eight Capital to prepare the bank for transactions involving bitcoin in case of a regulatory green light. "They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd, this is a negative", Kelly added. Overall, EOS seems to be down by roughly 15 percent over the last 24 hours, making it one of the largest single-day losses over the past week.

An even more drastic view sees today's drop as contributing to a drastic downward push on Bitcoin price; seeing it fall past the $5000 level until there are more supports.

This news top the market by sudden surprise and everyone started dumping coins across the board assuming that this move by Goldman would mean there would be no institutional money flowing into the crypto market.

The next few days will show investors a lot about Bitcoin price action.

Related news: